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INDUSTRIAL AND SOCIAL JUSTICE 



TRIAL OUTLINE AND BIBLIOGRAPHY 



By 

Henry Clayton Metcalf v 
Professor of Economics in Tufts College 



'Ills COLLEGE, MASS. 
THE TUFTS COLLEGE PRESS 

Copyright, 191 2, by H. C. Metcalf 






gCI.A327!36 




INDUSTRIAL AND SOCIAL 
JUSTICE 



A— INTRODUCTORY 

The overshadowing importance of industrial peace. Cost of indus- 
trial warfare to employer, workman, the public. Disharmonies due to 
increasing industrialism and the growth of democratic ideas. " In the 
industrial world, there is no question of equal importance to that of the 
relationship of employers and employed, and not one in such an unsat- 
isfactory position.' ' (Sir George Livesey). 

B— CAUSES OF INDUSTRIAL DISCORD 

I. INFLUENCE OF PHYSICAL ENVIRONMENT 

1. The Dependence of Hankind upon Physical Nature. Lack of 
harmony between man and his natural environment. The conquest of 
nature creates differences in needs and ideals, causing conflict between 
man and man. Antagonism of interests growing out of economic scar- 
city. (< The omnipresence of the universal cosmic conditions around and 
within every human motion is the first prime factor to be estimated at its 
actual relative worth in every analysis of an individual act or of a group 
status." '(A. W. Small). 

II. ECONOMIC ANTAGONISMS 

1. Disharmonies Due to the Growth of Population and Migrations. 

The multiplication of numbers, the indefinite expansion of human wants, 
and economic scarcity. Factors controlling the distribution of popu- 
lation. Natural and stimulated migrations. Ill-distributed population 
and exploitation. Intensified conflicts resulting from labor immobility 
and industrial concentration. 

2. Antagonisms Caused by the Growth of Capital, (a) Investors 
versus entrepreneurs, (b) Employers versus employees. Capital mass 
weakens the personal relationship. Capitalism means indirect opera- 
tions; prolonged preparation; enlarged, complex, automatic machinery 
and processes; probable over-investment of new capital; wage reduc- 
tions and involuntary unemployment. Does the growth of capital, 
causing collective disagreements, demand collective bargaining? 



3. Antagonisms Due to Changes in Hethods of Production. Oppo- 
sition between capitalists; between entrepreneurs and organized labor; 
between capitalists and laborers versus the public. Labor discords due 
to substitutions, — new materials, new processes, new machines, new 
sources of power. Union versus unorganized labor, union versus union, 
unskilled versus skilled; displacement of men by women, women by 
men, adult by juvenile labor. Serious antagonisms arise from the im- 
mediate effect * of changes upon individual laborers, due to redistribu- 
tion and destruction of individual quality (anxious insecurity, growing 
sense of dependence), and from the lack of any adequate system of 
measuring industrial energy. 

4. Conflicts due to Changes in the Forms of Industrial Organiza- 
tion and Business Hanagement. (a) Friction, between trades and 
groups of trades. Bonds of harmony and antagonisms between extrac- 
tive, manufacturing, and distributive processes. Bitter opposition be- 
tween associations of employers and wage earners ; between trade unions 
and industrial unionism (I. W. W.). Is the industrial type of unionism 
likely to adopt the closed shop policy ? (b) Pecuniary versus indus- 
trial occupations. Differences in habit of thought arise between those 
engaged in (i) business or pecuniary, (ii) industrial or mechanical em- 
ployments. Diverse disciplinary influence of materio-economic environ- 
ment leads to differences in fundamental postulates. "Human person- 
ality — will, caprice, cunning, — legality, moral strength or weakness, 
pecuniary energy, form the basis of the fundamental economic notions 
of the capitalist-employer." (Hoxie). Physical contact (material and 
personal) causes group consciousness among the wage earners. ■' The 
most momentous and striking fact of the industrial revolution is the 
growing sense of solidarity of the labor world." (/. H. Gray). Are 
the stratifications within big businesses increasing, and do they make it 
impossible for the employing and wage-earning classes to agree in regard 
to industrial justice ? (c) Large scale management has intensified the 
need of human conservation. Preventable sources of discord, — hap- 
hazard vocation choosing, premature employment, women working 
under destructive conditions, hazardous and unhealthy occupations, 
long hours, industrial overstrain, mis-,under-, and un-employment, speed, 
monotony and over-specialization, unscientific methods of employ- 
ment, promotion, and discharge, — all fruitful sources of industrial 
warfare. " The large scale industries of our day call for semi-military 
organization, — for punctuality, prompt obedience, submission to orders. 
Discipline in the employer's hands rests on the power of discharge." 
(F. W. Taussig). " Factory discipline is valuable only up to a certain 
point, after which something else must be depended on if the best re- 
sults are to be achieved." {fane Addams). (d) Antagonisms due to 
predatory management. Stock gambling, unscrupulous management, 



certain forms of business secrecy. Powerlessness of stockholders to 
exercise effective control, (e) Artificial monopolization. Causes an- 
tagonisms between competing employers, between different groups of 
laborers, employers and laborers, and bitter antagonisms between em- 
ployers and the community at large. Does diversity of interests neces- 
sarily mean personal hostility ? Does large-scale management create, 
apportion, and maintain equality of economic opportunity ? Does large- 
scale management reach a maximum of efficiency before it reaches a 
maximum of possible size ? 

5. Conflicts arise from the Indefinite Extensibility of Consumers' 
wants. The stimulation of new wants, — physical, intellectual, aesthetic 
— and the means of satisfying them. Capital and labor readjustments, 
due to changes in consumption, cause constant friction. Artificial stim- 
ulation of wants leads to alternating periods of business activity and 
depression — misdirected effort, over-exertion, unemployment, human 
waste, industrial warfare. 

6. Industrial Autocracy. " Economic absolutism, however benefi- 
cent it may be, or however much it may increase wages, is inconsistent 
with the democratic movement of the last hundred and fifty years. . . . 
The workman believes that absolutism is as dead in industry as in gov- 
ernment. . . . the great impending changes are in the direction of greater 
democracy in industry." (/. H. Gray). What are the advantages and 
difficulties of industrial absolutism ? Does industrial peace necessarily 
mean greater cooperation with trade unions ? 

III. SOCIO-POLITICAL ANTAGONISMS 

Introduction. Mental habits linger after economic conditions causing 
them have disappeared. Strife is caused by mistaking the means (vari- 
ous social institutions) for the end (social utility). 

1. Social Status. Chief causes of class stratification and social dis- 
harmonies : age, sex, race, differentiation in occupation, property 
ownership, income, love of power, original differences of habits, limita- 
tions of human nature, complexity of human motives. Property owner- 
ship, capital connection, nepotism, class prejudices form struggle factors 
of the first rank. Diversity of laws and methods of administration 
cause social and political discord. " The complexity of the social con- 
flict is perhaps nowhere more observable than in connection with the 
phenomena of capital." (A. B. Small). 

2. Prejudices of Race and Nationality. Economic, political and 
social antagonisms due to race feeling and to racial displacements — 
negroes, Chinese, and unskilled immigrants. Race antagonisms in 
American mines, railways, and factories. Difficulties in establishing rel- 



ative standards of race value. c< The fact is that no race per se, whether 
Slovak, Ruthenian, Turk or Chinese, is dangerous and none undesirable ; 
but only those individuals whose somatic traits or germinal determiners 
are, from the standpoint of our social life, bad." (C. B. Davenport). 
" We cannot afford to pay heed to whether he [the immigrant] is of one 
creed or another, of one nation or another . . . what we should desire 
to find out is the individual quality of the individual man." (Roosevelt). 
Should the results of recent immigration be chiefly considered in their 
economic or in their socio-political aspects ? 

3. Language Barriers. The difficulties of assimilation. Are differ- 
ent languages likely to become the rallying centres of conflicting 
interests? 

4. Religious Animosities. Evidences of, in occupation, in education, 
in politics. 

C— GUIDING PRINCIPLES FOR THE PROMOTION 
OF INDUSTRIAL AND SOCIAL JUSTICE 

1. There is no Single Panacea for Industrial and Social Antago= 
nisms. " It can never be shown generally. . . that the interests of 
master and laborer are alike, or that they are opposed ; for, according to 
circumstances, they may be either." (Ruskin). 

2. Protection of Material Interests : Governmental Supervision 
and Control of Sub=Normal Work Conditions. «* Industrial i*lini= 
mums." Wages, employment of women and children, trade injuries, 
occupational disease, industrial overstrain, misemployment, involuntary 
unemployment, compulsory compensation by compulsory insurance and 
pensions, publicity. 

3. Restraining Power of Elements Representing Conflicting In- 
terests. Employers, workmen, the public. Progressive development 
of power of self -restraint in each group. 

4. Vocational Guidance. (a) The determination of individual 
aptitudes, (b) Freedom of choice of occupation, (c) Equal oppor- 
tunity for the application of individual aptitudes in (i) education, (ii) 
occupation. " The removal of all artificial barriers to choice of occupa- 
tion is the most important goal for society." (F. IV. Taussig). " The 
first condition of an efficient organization of industry is that it should 
keep everyone employed at such work as his abilities and training fit 
him to do well." (Marshall). 



5. Just Distribution of the Surplus Product. " The abuse or un- 
economical use of the surplus product is the source of every sort of 
trouble or malady of the industrial system, and the whole problem of 
industrial reform may be conceived in terms of a truly economical dis- 
posal of this surplus." {J. A. Hobson). 

6. The Development of Economic Chivalry. Development of the 
three-fold trusteeship of corporate capital — labor, capital, the public. 
" The subordination of distinctly economic activities and wealth to a 
wider conception of social activity and wealth." (J. A. Hobson), The 
guardianship of a wise public opinion is essential to industrial and social 
justice. 

7. Constitutionalism in Industry. Copartnership in self-interests, 
in aptitudes, in profits, in control. i( True democracy is that which per- 
mits each individual to put forth his maximum of effort." (C. W. Eliot). 
" You [the laborer] were a slave, then a serf, next a wage hireling, and 
you must ultimately become a partner." {Mazzini). "The system 
which comes nearest to calling out all the self-interests and using all 
the faculties and sharing all the benefits will out-compete any system 
that strikes a lower level of motive faculty and profit." (H. D. Lloyd). 
'* There is not a more accurate test of the progress of civilization than 
the progress of the power of cooperation." (J. S. Mill). 

D— MEASURES DESIGNED TO SECURE SOCIAL AND 
INDUSTRIAL PEACE 

Introduction. The need of reliable information. Difficulties of in- 
vestigation: misunderstandings ; personal prejudices — economic, politi- 
cal, religious ; inertia — ignorance, indifference, custom; complexity of 
the economic relations and human motives — desire for gain, activity, 
love of power, sympathy, pity, affection, altruism ; highly dynamic 
character of American society. 

I. PALLIATIVES 

1. Under Private Auspices. (a) Various efficiency schemes: 
profit sharing, gain sharing, premium plans, sliding scales, welfare in- 
ventions, scientific management. Accomplishments. Reasons for fail- 
ures, — mutual distrust, vagueness and remoteness of promised reward, 
autocratic management, (b) Conciliation, mediation, and arbitration 
boards. Temporary and permanent tribunals. Types of adjudication, — 
England, France, the United States. Advantages and weaknesses. 
Trades and Workers Association. 



2. Under Public Auspices. Conciliation, mediation, and arbitration 
tribunals. Voluntary and compulsory. Types, — New Zealand, Aus- 
tralia, Europe, the United States. Difficulties of arbitration : the ascer- 
taining of adequate and accurate data, selection of satisfactory arbitrators, 
withholding from arbitral adjudication disputes involving a principle 
(closed shop, recognition of the union), no definite principle of justice 
in the adjustment of wages by arbitration. The Erdmann Act : causes 
of success, — weariness of industrial strife, recognition of the right of 
collective bargaining, voluntary settlement, freedom from court-like 
judgments, causes friendly feelings, personality of the arbitrators. Re- 
cent activity of Congress in behalf of industrial peace. How enforce 
arbitration decisions when they go against the laborers ? 



II. CORRECTIVE MEASURES 

1. The Extension of Trade Unionism. " The trade agreement holds 
out the greatest hope for industrial peace in the future. V (C D. Wright), 

2. Scientific Control of Immigration. Proposed measures of con- 
trol : literacy tests, inspection abroad, physical standardization, mini- 
mum wage, social amalgamation, eugenic selection. 

3. Human Conservation. Protection of child and woman, prevention 
of work hazards, elimination of overstrain, promotion of industrial 
hygiene, adequate compensation or insurance, and pensions. 

4. Equitable Labor Remuneration. Cooperative enterprises, labor 
copartnership. Complexities of accurate measurements and just rewards 
of individual differences. 

5. Compulsory Investigation of Industrial Disputes. Canadian 
experience. American efforts. Tentative bill of the Industrial Rela- 
tions Committee of the Boston Chamber of Commerce. 

6. Co-operative Efforts in Behalf of Industrial Harmony. American 
Association for L,abor Legislation, National Civic Federation, Chamber 
of Commerce of the United States. 

T. Vocational Guidance. Functions of, in promoting social and 
industrial justice. 

8. The Right Sort of Control. Intelligent, honest, vigilant indus- 
trial leadership, combined with non-partisan, thorough, patient, and 
courageous legislation. 



E— SUGGESTED TOPICS FOR INVESTIGATION 

i. Industrial warfare: (a) recent new causes of industrial conflict; 

(b) new counteracting, harmonizing forces. 

2. The cost of industrial warfare : (a) to employer, (b) to' laborer, 

(c) to the public. 

3. The influence of industrial concentration upon labor : (a) the rate 
of wages; (b) the amount of employment; (c) continuity of employ- 
ment; (d) length of the working day ; (e) opportunities for the laborers 
to exploit their varied aptitudes. 

4. The nature and sources of capitalistic power : power over goods 
and services, over the press, and over public sentiment. 

5. The conservation of workers in the continuous employments : 

(a) classification of the continuous industries; (b) number of wage 
earners; (^) work conditions; (d) the right to wholesome, constructive 
leisure. 

6. The decasualization of casual (intermittent) employments: (a) 
classification of the employments; (b) number of employees — men, 
women, children ; (c) how regularize. 

7. Labor conditions in the iron and steel industry : {a) living wage ; 

(b) erratic employments; (c) substitutions; (d) methods of remunera- 
tion ; (e) attitude toward trade unions. 

8. Occupational diseases : {a) classification of health-destroying mate- 
rials ; (b) the promotion of industrial hygiene. 

9. Scientific methods of hiring and promoting workmen. How far are 
the employing classes recruited from the ranks of the wage earners? 

10. Efficiency schemes : (a) profit and stock sharing — recent exten- 
sions in England and the United States; (b) scientific management — 
successes and difficulties in (i) private establishments, (it) public man- 
agement. 

11. Recent growth of associations of (a) employers, (b) wage earners. 
Extent and results of methods of collective bargaining. 

12. Industrial peace agencies : (a) list of institutions, societies, asso- 
ciations engaged in industrial peace work ; (b) publications devoted to 
the same ; (c) critical examination of the character and value of each. 

13. The most equitable methods of wage payments. 

14. The Erdmann Act : (a) reasons for success in the railway in- 
dustry ; (b) its possible extended application and uses toother than the 
railway industry. 

15. Schemes of compulsory investigation : (a) Canadian experience ; 
{b) Experience of American commonwealths; {c) proposed bill of the 
Industrial Relations Committee of the Boston Chamber of Commerce. 

9 



i6. Thrift agencies in industrial establishments : savings and loan 
associations, mutual benefit societies, old age annuities, etc. 

17. Advertising: (a) new methods ; (b) social gain and loss. 

18. Control of immigration : (a) economic, political, and social diffi- 
culties ; (b) proposed measures of control. 

19. Vocational guidance: (a) private experiments; (b) beginnings 
in public school systems ; (c) best schemes of education for vocational 
purposes; (d) literature of vocational direction. 

20. Industrial democracy : (a) experiments in representative govern- 
ment in industry; {b) literature of industrial copartnership. 

F— BIBLIOGRAPHY 

1. Bibliographies. Bibliography on Industrial Hygiene. American 
Labor Legislation Review, June, 1912. Bowker, R. R. and lies, George, 
The Readers Guide in Economic, Social and Political Science. Business 
Book Bureau, What to Read on Business. Teachers in Harvard Univer- 
sity, A Guide to Reading in Social Ethics and Allied Subjects. Library 
of Congress (Division of Bibliography), bibliographies on Labor partic- 
ularly relating to Strikes, Old Age and Civil Service Pensions, Boycotts 
and Injunctions in Labor Disputes, Workingmen 's Insurance, Employ- 
er's Liability and Workmen's Compensation, Postal Savings Banks, and 
Industrial Arbitration. Social Research Council of Boston (Bulletin 
No. 1). Taylor, F. Isabel, A Bibliography of Unemployment . 

2. General References: Adams, Thomas S. and Sumner, Helen L., 
Labor Problems. Anderson, Benjamin M., Social Value. Beveridge, W. 
H., Unemployment , a Problem of Industry. Bosanquet, B., The Princi- 
ple of Individuality and Value. Brandeis, Louis D., Scientific Manage- 
ment and Railroads. Brooks, John G., An American Citizen, Life of 
William Henry Baldwin, fr., The Social Unrest. Biicher, Carl, Indus- 
trial Evolution (translated by Wickett.) Carlton, Frank T., The History 
and Problems of Organized Labor. Carver, Thomas N., Sociology and 
Social Progress. Chamberlain, Arthur H., Standards in Education. 
City Club of Chicago, Vocational Training in Chicago and Other Cities. 
Clark, John B., The Essentials of Economic Theory. Clopper, Edward 
N., Child Labor in City Streets. Cooley, Charles H., Social Organiza- 
tion. Cunningham, W., Christianity and Social Questions. Davenport, 
Charles B. } Heredity in Relation to Eugenics. Davidson, John, The 
Bargain Theory of Wages. Dealey, James, Sociology. Dean, Arthur, 
The Worker and the State. Devine, Edward T., Report on the Desira- 
bility of Establishing an Employment Bureau in the City of New York. 
Emerson, Harrington, The Twelve Principles of Efficiency. Evans, 
Holden A., Cost Keeping and Scientific Management. Fairchild, Henry 
P., The Restriction of Immigration (The American Economic Review, 
Supplement, March, 1912). Farnum, Henry W., Labor Legislation and 

10 



Economic Progress, (American Association for Labor Legislation, Pub- 
lication No. 9). Fetter, Frank A., The Principles of Economics. Fisher, 
Irving, Report on National Vitality, Its Wastes and Conservation. Fos- 
ter, W. T., The Administration of College Curriculum. Gantt, H., 
Work, Wages, and Profits : Their Influence on the Cost of Living. Gid- 
dings, Franklin H., Readings in Descriptive and Historical Sociology. 
Gilbreth, Frank B., Motion Study ; The Primer of Scientific Manage- 
ment, Gilman, Nicholas P., Methods of Industrial Peace ; Profit Sharing 
Between Employer and Employee. Goldtnark, Josephine, Fatigue and 
Efficiency. Going, Charles B., Principles of Industrial Engineering . 
Hadley, Arthur T., Freedom and Responsibility ; Standards of Public 
Morality. Hobson, John A., The Evolution of Modern Capitalism; 
The Industrial System. ' Industrial Copartnership in British Isles 
[Daily Consular and Trade Reports, issued by the Bureau of Manufac- 
tures, Department of Commerce and Labor. August 26, 1912). Jenks, 
Jeremiah W., Governmental Action for Social Welfare. Jenks, Jeremiah 
W. and Lauck, W. J., The Immigration Problem. Knoop, Douglas, In- 
dustrial Conciliation and Arbitration. McCarthy, Charles, The 
Wisconsin Idea. Mackaye, James, The Economy of Happiness. Mar- 
shall, Alfred, Principles of Economics. Miinsterberg, Hugo, American 
Problems. Morals in Modern Business (Lectures delivered in 1908, 
Sheffield Scientific School). Nearing, Scott, Social Adjustment. Oliver, 
Thomas, Dangerous Trades; Diseases of Occupation. Overlook, M. G., 
The Working People : Their Health and How to Protect It. Parsons, 
Frank, Choosing a Vocation. Patten, Simon N., The Development of 
English Thought ; The New Basis of Civilization. Pigou, A. C, Prin- 
ciples and Methods of Industrial Peace. Price, L. L., F. R., Industrial 
Peace. Richards, L. S., Vocophy : the New Profession of Naming Voca- 
tions. Roberts, Peter, The New Immigration. Rowntree and Lasker, 
Unemployment, a Social Study. Royce, Josiah, The Philosophy of Loy- 
alty. Schloss, David F., Insurance against Unemployment ; Methods of 
Industrial Remuneration. Scott, Walter Dill, Increasing Human 
Efficiency in Business. Seager, Henry R., Social Insurance. Seath, 
John, Education for Industrial Purposes. Shad well, Arthur, Industrial 
Efficiency. Small, Albion W., General Sociology. Snedden, David, The 
Problem of Vocational Education. Strayer, George D., Age and Grade 
Ce?isus of Schools and Colleges, a Study of Retardation and Elimina- 
tion, (Bulletin of the U. S. Bureau of Education, 1911, No. 5). Taussig, 
F. W., Principles of Economics. Taylor, Frederick W., The Principles 
of Scientific Management ; Shop Management. Thorndike, Edward L-, 
Individuality. Thwing, Charles F., College Training and the Business 
Man. Tolman, W. H., Social Engineering. Tuck School Conference, 
Scientific Management. Tucker, William J., Personal Power* Van Hisc, 
Charles R., The Co?iservation of Natural Resources in the United States. 

11 



Veblen, Thorstein, The Theory of Business Enterprise. Ward, Lester 
F., Applied Sociology. Webb, Sydney and Beatrice, Industrial Democ- 
racy. Weyl, Walter E M The New Democracy. Wicksteed, Philip H., 
The Common Sense of Political Economy. Wyman, Bruce, Control of 
the Market. 

3 DOCUMENTS, SOURCES, AND PERIODICALS 

Documents : Hearings before the Special Committee to Investigate 
the Taylor and Other Systems of Shop Management. Report on Condi- 
tions of Employment in Iron and Steel Industry in the United States. 
Report on Condition of Woman and Child Wage-Earners in the United 
States. Reports of the Immigration Commission. Report of Massachu- 
setts Minimum Wage Commission, Report of the Royal Commission 
(England) On the Poor Laws and Relief of Distress. Strike at Law- 
rence, Mass. (Hearings before the Committee on Rules of the House of 
Representatives on House Resolutions 4og and 433). 

Sources: American Association for Labor Legislation. The Carnegie 
Foundation for the Advancement of Teaching. The National Civic Fed- 
eration [Proceedings of Twelfth Annual Meeting) . National Conference 
of Charities and Correction. National Education Association (Addresses 
and Proceedings). National Society for the Promotion of Industrial 
Education. Russell Sage Foundation. State Boards of Conciliation 
and Arbitration. State Bureaus of Statistics of Labor. United States 
Bureau of Education. United States Commissioner of Labor (Bulletins 
and Reports). Fourth Annual Report: Working Women in Large 
Cities. Sixteenth Annual Report : Strikes and Lockouts. Twenty-fourth 
Annual Report : Workmen s Insurance and Compensation Systems in 
Europe. (2 vols.). Twenty-fifth Annual Report: Industrial Education. 
Bulletins No. 49, Labor Conditions in New Zealand ; No. 56, Labor 
Conditions in Australia ; No. 60, Government Industrial Arbitration ; 
No. 75, Industrial Hygiene : No. 76, The Canadian Indtistrial Disputes 
Investigation Act of 1907 ; No. 86, Canadian Industrial Disputes Inves- 
tigatioji Act of 1907; No. 95, Industrial Lead Poisoning in Great Brit- 
ain, White Lead Industry in the United States, Deaths from Industrial 
Lead Poisoning in New York State ; No. 98, Mediation and Arbitration 
of Railway Disputes in United States, Canadian Industrial Disputes 
Act of 1907, Conciliation and Arbitration in Great Britain, Conciliation, 
etc., in Cloak Industry in New York City, Industrial Courts in France, 
Germa?iy, and Switzerland. United States Industrial Commission, 
vol. xvii. 

Periodicals: The American Economic Review. The American four- 
nal of Sociology. Annals of the American Academy of Political and 
Social Science. The Engineering Magazine. Human Engineering . 
Industrial Engineering . The Survey. 



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